Cambodia-Japan Trade Surges Nearly 20%, Approaching $2 Billion in First Eight Months of 2026

Bilateral trade between Cambodia and Japan reached $1.99 billion in the first eight months of 2026, an 18.7 per cent jump driven by RCEP benefits and expanding Japanese investment in Cambodian manufacturing.

Trade between Cambodia and Japan continued its upward trajectory in 2026, climbing close to $2 billion during the January-to-August period — a rise of nearly one-fifth over the same stretch last year. Japan ranks as Cambodia's fourth-largest trading partner, behind China, the United States and Vietnam.

Figures from Cambodia's General Department of Customs and Excise show bilateral trade hit $1.99 billion in the first eight months of the year, an 18.7 per cent increase from the $1.67 billion recorded in the corresponding period of 2025. Cambodian exports to Japan grew 22.2 per cent to $1.27 billion, while Japanese imports into Cambodia rose 13.1 per cent to $717.55 million.

Key Drivers Behind the Growth

Economist Hong Vanak of the Royal Academy of Cambodia pointed to two main factors fueling the expansion. First, the Regional Comprehensive Economic Partnership (RCEP) has lowered tariffs and simplified customs procedures, making Cambodian goods more competitive in Japan. Second, Japanese investor confidence has deepened, leading to more Japanese-owned factories operating in Cambodia and producing goods for multiple industries.

"Beyond buying more Cambodian products, Japanese companies are increasingly setting up manufacturing operations in the country. Japan should be regarded as a valuable trading partner," Vanak said on September 29.

He noted that Cambodia's top exports to Japan include:

Garments
Parts and components
Electronic components
Select agricultural products

Japan, in return, ships machinery, vehicles, electronic equipment and a range of consumer goods to Cambodia.

Opportunities and Challenges

Lim Heng, vice-president of the Cambodia Chamber of Commerce, described Japan as a significant and growing market for Cambodian goods. He said Japan's technology-driven economy creates openings for Cambodia to expand its agricultural exports, though he cautioned that Japan's rigorous quality and packaging standards remain a high bar for entry.

Cambodia's political stability and robust economic growth have also made the country increasingly attractive to Japanese firms seeking direct investment opportunities, Lim added.

JETRO Delegation Visits Sihanoukville Port

On September 28, a delegation from the Japan External Trade Organization (JETRO), accompanied by representatives of several prospective Japanese companies, toured the Sihanoukville Autonomous Port. The visit was aimed at familiarizing the group with the port's operations, development progress and potential, as well as exploring direct investment prospects in Cambodia.